Xerox Corporation (XRX)

Xerox Holdings Corp (XRX) stock plummeted by 10.11% following its first-quarter 2024 earnings report, which fell short of analyst forecasts.

• Financial Results: The company reported a revenue of $1.50 billion, a decrease of 12.4% year-over-year, missing estimates of $1.534 billion. Net loss was recorded at $113 million, significantly below the estimated net income of $49.50 million. GAAP loss per share stood at $0.94, underperforming against the estimated earnings of $0.35 per share. Adjusted Net Income achieved $11 million, showing a sharp decline from the previous year and not meeting the quarterly net income estimate. Free Cash Flow was reported a negative $89 million, indicating a substantial decrease from the previous year. Adjusted operating margin was 2.2%, a decrease of 470 basis points from the previous year.
• Guidance and Outlook: Xerox expects a revenue decline of 3% to 5% in constant currency for the full year and an adjusted operating margin of at least 7.5%. The company faced challenges in the first quarter, including changes in its operating model and charges related to Project Reinvention, which incurred $100 million in after-tax charges.

Shares of Xerox Corporation (XRX) dropped by 6.82% from $13.48 to $12.56 in the trading on Tuesday, October 24, 2023. The reason why XRX stock down is due to the company's lower-than-expected Q3 sales:

• Revenue: Q3 2023 revenue amounted to $1.65 billion, marking a 5.7% decline and falling short of the consensus estimate of $1.71 billion.
• FY 2023 outlook: Xerox expects flat to slightly lower revenue for full-year 2023, with stronger demand in the Americas but softer demand in Europe.